Russian central bank keeps key rate unchanged

Last Friday (July 28), the governing board of the Central Bank of Russia decided to hold its key rate at 9 %. The board noted that inflation is currently running close to the 4 % target and that the economic recovery continues. Even if rates were not adjusted at the July meeting, the CBR stated that a rate cut before the end of the year remains possible. The press release also noted the economic growth is now approaching potential and that certain branches are even showing signs of looming labour shortages.